Bay City FHA Loan Rates, Closing Costs & Stats

BAY CITY, MI

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Bay City's 49 lenders originated 227 FHA loans during 2023. The total origination value was $28,565,000, with an average FHA loan value of $125,837.

    Bay City FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Bay City averaged 6.39% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Bay City's average FHA mortgage closing costs are $5,138.

    The average rate for the prior week (2024-11-01) was 6.56% and one month ago for the week of 2024-10-04, the average rate was 6.08%.

    The average rate one year ago was 7.43%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.53%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Bay City FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Bay City level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 38 6.45% $6,590
    ACADEMY MORTGAGE CORPORATION 24 6.84% $7,601
    UNITED WHOLESALE MORTGAGE, LLC 18 6.92% $7,825
    FIRST COMMUNITY MORTGAGE, INC. 15 6.78% $5,871
    MICHIGAN MUTUAL, INC. 6 6.46% $6,405
    J. VIRGIL, INC. 5 6.75% $6,816
    STAUNTON FINANCIAL, INC. 5 7.23% $7,213
    Preston Home Loans Inc 5 7.15% $6,358
    BROKER SOLUTIONS, INC. 3 6.42% $7,249
    CARDINAL FINANCIAL 3 6.63% $6,653
    DAS Acquisition Company, LLC 3 7.50% $8,062
    Equity Prime Mortgage LLC 3 6.67% $7,254
    FREEDOM MORTGAGE CORPORATION 3 6.92% $8,644
    GENEVA FINANCIAL, LLC 3 7.33% $7,113
    LAKE MICHIGAN CREDIT UNION 3 6.67% $5,817
    The Huntington National Bank 3 6.58% $4,724
    PENNYMAC LOAN SERVICES, LLC 2 6.56% $7,137
    MORTGAGE 1 INCORPORATED 2 6.06% $8,826
    LOANDEPOT.COM, LLC 2 7.18% $5,839
    Mr. Cooper ( Nationstar Mortgage ) 2 6.88% $8,980
    UNION HOME MORTGAGE CORP. 2 6.94% $8,050
    LEGEND LENDING CORPORATION 2 6.63% $9,997
    NEWREZ LLC 2 6.75% $6,641
    AMERICAN FINANCING CORPORATION 1 6.88% $6,181
    BLG HOLDINGS, INC. 1 7.50% $11,362
    MICHIGAN SCHOOLS AND GOVERNMENT 1 5.00% $3,938
    MOVEMENT MORTGAGE, LLC 1 6.63% $5,397
    NATIONS DIRECT MORTGAGE, LLC 1 7.25% $10,943
    Neighborhood Loans, Inc. 1 7.13% $6,385
    PLAZA HOME MORTGAGE, INC. 1 7.25% $7,352
    PNC Bank 1 6.75% $5,277
    BAYSHORE MORTGAGE FUNDING, LLC 1 7.63% $9,894
    Barrington Bank & Trust Company, N.A. 1 7.25% $8,175
    RELIANCE FIRST CAPITAL, LLC 1 6.38% $4,129
    ROSS MORTGAGE CORPORATION 1 6.38% $3,930
    AXIA FINANCIAL, LLC 1 8.00% $11,382
    SUCCESS MORTGAGE PARTNERS, INC. 1 7.99% $6,570
    Dort Financial Credit Union 1 6.75% $4,611
    EMM LOANS LLC 1 6.25% $15,456
    The Federal Savings Bank 1 5.75% $18,624
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 6.75% $7,213
    Citizens Bank 1 6.63% $4,726
    Fifth Third Bank 1 6.88% $1,334
    Flagstar Bank, FSB 1 6.08% $5,369
    ZILLOW HOME LOANS, LLC 1 6.75% $6,880
    GUILD MORTGAGE COMPANY 1 6.63% $8,829
    GVC MORTGAGE, INC. 1 7.00% $10,796
    HOMESTAR FINANCIAL CORPORATION 1 7.25% $2,911
    CANOPY MORTGAGE, LLC 1 7.63% $8,058

    The top Bay City FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 38 FHA loans originated. Their average total fees are $6,590, which is $1,011 lower than the next largest lender, ACADEMY MORTGAGE CORPORATION.

    The lowest fee Bay City FHA lenders (with over 10 loans originated) are FIRST COMMUNITY MORTGAGE, INC. ($5,871), QUICKEN LOANS, LLC ($6,590), ACADEMY MORTGAGE CORPORATION ($7,601), UNITED WHOLESALE MORTGAGE, LLC ($7,825) and .

    The lowest rate Bay City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.45%), FIRST COMMUNITY MORTGAGE, INC. (6.78%), ACADEMY MORTGAGE CORPORATION (6.84%), UNITED WHOLESALE MORTGAGE, LLC (6.92%) and .

    Bay City FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    BAY CITY, MI BAY 2022 $420,680 $538,650 $651,050 $809,150
    BAY CITY, MI BAY 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).